diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2fed7d5ef..ca6a978e0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - [\#328](https://github.com/Manta-Network/manta-rs/pull/328) Expose reset wallet method.
 
 ### Changed
+- [\#327](https://github.com/Manta-Network/manta-rs/pull/327) Update BIP32 to v0.4.0.
 
 ### Deprecated
 
diff --git a/manta-pay/Cargo.toml b/manta-pay/Cargo.toml
index 0d6dda485..4ec0d3525 100644
--- a/manta-pay/Cargo.toml
+++ b/manta-pay/Cargo.toml
@@ -110,7 +110,7 @@ websocket = [
 [dependencies]
 aes-gcm = { version = "0.9.4", default-features = false, features = ["aes", "alloc"] }
 bip0039 = { version = "0.10.1", optional = true, default-features = false }
-bip32 = { version = "0.3.0", optional = true, default-features = false, features = ["bip39", "secp256k1"] }
+bip32 = { version = "0.4.0", optional = true, default-features = false, features = ["bip39", "secp256k1"] }
 blake2 = { version = "0.10.6", default-features = false }
 bs58 = { version = "0.4.0", optional = true, default-features = false, features = ["alloc"] }
 clap = { version = "4.1.8", optional = true, default-features = false, features = ["color", "derive", "std", "suggestions", "unicode", "wrap_help"] }
diff --git a/manta-pay/src/key.rs b/manta-pay/src/key.rs
index 06d332cc2..acf65006a 100644
--- a/manta-pay/src/key.rs
+++ b/manta-pay/src/key.rs
@@ -306,3 +306,52 @@ impl TryFrom<String> for Mnemonic {
         Self::new(string.as_str())
     }
 }
+
+/// Testing framework
+#[cfg(test)]
+pub mod test {
+    use crate::key::{Calamari, CoinType, KeySecret, Manta, Testnet};
+    use manta_crypto::rand::{ChaCha12Rng, SeedableRng};
+
+    /// Hardcoded testnet secret key value in bytes for the BIP32 0.3.0 version
+    const SECRET_KEY_TESTNET: [u8; 32] = [
+        55, 177, 88, 96, 186, 231, 197, 20, 152, 186, 220, 249, 99, 7, 206, 216, 161, 49, 179, 32,
+        62, 26, 87, 161, 13, 69, 41, 84, 20, 146, 126, 20,
+    ];
+
+    /// Hardcoded manta secret key value in bytes for the BIP32 0.3.0 version
+    const SECRET_KEY_MANTA: [u8; 32] = [
+        228, 135, 94, 228, 192, 30, 201, 41, 57, 204, 21, 73, 71, 4, 79, 69, 6, 223, 159, 72, 196,
+        237, 14, 159, 211, 248, 36, 248, 128, 71, 142, 251,
+    ];
+
+    /// Hardcoded calamari secret key value in bytes for the BIP32 0.3.0 version
+    const SECRET_KEY_CALAMARI: [u8; 32] = [
+        170, 5, 152, 195, 158, 157, 166, 172, 135, 10, 191, 238, 53, 71, 37, 124, 103, 223, 17,
+        194, 178, 237, 231, 204, 21, 14, 23, 174, 90, 248, 129, 208,
+    ];
+
+    /// Computes a secret key and asserts it is equal to the hardcoded `value`.
+    #[inline]
+    pub fn secret_key_generation<C>(value: [u8; 32])
+    where
+        C: CoinType,
+    {
+        let mut rng = ChaCha12Rng::from_seed([0u8; 32]);
+        let xpr_secret_key = KeySecret::<C>::sample(&mut rng)
+            .xpr_secret_key(&Default::default())
+            .to_bytes();
+        assert_eq!(
+            xpr_secret_key, value,
+            "BIP32 version is not backward-compatible with 0.3.0."
+        );
+    }
+
+    /// Runs the test above for [`Testnet`], [`Manta`] and [`Calamari`].
+    #[test]
+    fn secret_key_generation_test() {
+        secret_key_generation::<Testnet>(SECRET_KEY_TESTNET);
+        secret_key_generation::<Manta>(SECRET_KEY_MANTA);
+        secret_key_generation::<Calamari>(SECRET_KEY_CALAMARI);
+    }
+}